The Republic of Palau Financial Institutions Commission (“FIC”) is notifying the public that, at this time, Palau International Bank Limited (“PIBL”) is not an FIC-licensed institution and cannot operate in the Republic of Palau. PIBL also has no relation to Palau Investment Bank (“PIB”), which is an FIC-licensed institution and is authorized to operate in the Republic of Palau.
FIC is the only bank licensing authority in the Republic of Palau. Under the Financial Institutions Act, 26 PNC § 1003 (a)-(b), any entity operating as a financial institution or using the word bank (or derivatives) in its name without an approved license from the FIC can face heavy fines from the FIC and dissolution of the entity as a corporation. 26 PNC §1003(b).
The FIC encourages any members of the public to notify the FIC if they know of any such behavior by any institution or entity, including websites, social media platforms or any sort of publications where an institution purports to be a licensed commercial bank in the Republic of Palau. The FIC also encourages entities that have questions about this particular matter to contact the FIC. Should PIBL become a licensed institution, FIC will indicate through an update in its website (www.ropfic.org) to reflect this licensure.